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Self-driving cars: The death of the auto industry as we know it

An Introduction Autonomous vehicles are going to ravage the logistics and haulage industries, and private vehicle ownership is set to plunge, in a market that forces major consolidation between automakers who will be pressured by falling volumes. Emerging economies will not be a salvation, and increasing urbanization is going to strengthen the position of commercial ride-sharing services, which will become the main source of the consolidated automaker’s business. The combined revenue for the leading sixteen automakers in 2014 was around $1,511bn, or $1.51tn. At that scale, even a small percentage shift in the market caused by autonomous cars can have a painful effect on the automakers. With around 71m cars sold in that year, the average revenue per vehicle (with…

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